My first question is why can’t they qualify for a better loan now, such as DSCR or even a HELOC?

There are a lot of programs for “first time home buyers” out there right now, which pretty much means all you need to qualify is meet the IRS definition which is essentially cannot have owned and occupied your primary residence for the past three years.

Can you explain why he doesn't qualify for REPS?

@Gregory ReevesLet’s say more inventory did come on line, are there enough buyers who qualify who could even buy?

But what you can’t afford”Those who think prices will skyrocket again are missing the demand side of the equation in that there is not enough people who qualify in many locations and the numbers would not make sense as rentals.

Most can't qualify unless making six figures.

Then rent it to a qualified renter that will pay you what it's worth.You may find yourself in a pickle with the current renter.

The qualified intermediary for the 1031 has to be in place prior to either selling the old properties or buying the new property.

You can also obtain a DSCR second mortgage if you have trouble qualifying for a HELOC. 

I checked with one of the lenders recommended in the lender finder but I don't qualify due to the amount of the HELOC not reaching the minimum pull out amount of $50K.